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India to tighten rules for credit cooperatives

Govt to penalise co-ops that fail to repay investors, violate other rules

SUBRATA ROY: In jail for not complying with a court order to return US$5.4 billion to investors.

New Delhi

INDIA will crack down on errant financial firms that raise funds, mainly from millions of rural poor customers, through loosely regulated credit cooperative societies, a senior official at the Ministry of Agriculture said.

This follows a Reuters investigation that...